Which One of the Following Statements Is Correct Concerning the Capital

Multiple Choice

Which one of the following statements is correct concerning the capital intensity ratio?

A) The capital intensity ratio is the reciprocal of the total asset turnover ratio.
B) The capital intensity ratio provides the amount of sales generated for each $1 in total assets.
C) The higher the capital intensity ratio, the less emphasis the firm puts on capital.
D) The capital intensity ratio is used to compute the internal rate of growth.
E) The capital intensity ratio relates the amount of current assets to long-term assets.